Homeowners in New Jersey, the state with the highest property tax rates in the nation, may soon be able to take advantage of new tax loophole in the works which would provide some relief.
Real estate agent Denise Supplee at SparkRental.com says that some states are pushing back against the new tax law's provisions on state and local tax deductions. "New Jersey just passed a bill that will allow cities to create charitable endowments as a possible workaround. New Jersey homeowners could declare their property taxes as charitable donations ... There are four other states, including California, considering the same ploy," Supplee says to Realtor.com.
As if the news weren't already bad enough for the Garden State and others with high property taxes, it gets worse once the new tax code kicks in next year. In the past, property taxes were a separate tax deduction you could take in full. But starting in 2018, property taxes will be part of a lump deduction with state and local sales and income taxes—and capped at $10,000, even for those married filing jointly. Talk about a tight squeeze.
